Estate settlement - rights and obligations of the estate towards TR

The estate shall assume all financial obligations incumbent on the deceased. The rights and obligations of the estate of the deceased and heirs towards the TR shall be governed by the division of the estate.

It is important that the estate agents or heirs submit a tax return for the estate to the tax office. The SIA recalculates payments for the year on the basis of a certified tax return and when calculating the amounts may be indebted or credited.

A liability arises in the recalculation of an estate at death

If a debt is incurred in the recalculation of a death estate, TR shall be obliged to collect a claim from the estates of the deceased or heirs, irrespective of whether the debt was established before or after the end of the settlement.

Agreement on reimbursement of estate debt

You can negotiate the repayment of debt at the death estate and payment can be spread out for up to 12 to 36 months.

For more information or to negotiate a refund you can contact innheimta@tr.is

A credit is created by the recalculation of the estate of the deceased

If a credit is generated by the recalculation of the estate at death, the heirs are entitled to receive it.

How is the credit paid out:

• A credit is deposited to a registered bank account of the deceased if it has not been closed.

• If an account has been closed, the estate agent must provide TR with information on a new bank account.

• If there is no agent for the estate or the estate is completed, one heir must obtain the authority of other heirs to receive a deposit.

Provisional settlement

It is possible to request a preliminary settlement, the purpose of which is that the heirs can better understand whether a debt or a credit is expected at the final settlement.

In order to carry out a preliminary settlement, information about the pensioner's income must be sent to TR on a form prepared for that purpose.

What happens if the heirs of an estate cannot pay a debt

If the estate of the deceased has been completed as vacant, the following must be returned:

• overview of the progress of the exchange issued by the magistrate

If an estate has been taken up for public settlement, the following documents are required:

• overview of the progress of the exchange issued by the magistrate

• heirs do not guarantee their obligations

A claim shall be cancelled if:

• TR has not declared a claim within the deadline for declaration of claim

• a claim has been established after the period for stating claims has expired and the trustee in bankruptcy therefore does not recognise the claim.